Capabilities that enhance outcomes of an episodic supply chain collaboration

• DOI: http://doi.org/10.1016/j.jom.2011.02.001
• Author: Robert F. Lusch,Zach G. Zacharia,Nancy W. Nix
• Date: 01 September 2011
• Published date: 01 September 2011

Journal of Operations Management 29 (2011) 591–603

Contents lists available at ScienceDirect

Journal of Operations Management

journal homepage: www.elsevier.com/locate/jom

Capabilities that enhance outcomes of an episodic supply chain collaboration

Zach G. Zachariaa,∗, Nancy W. Nix b, Robert F. Luschc

aCollege of Business and Economics, Lehigh University, United States

bNeeley School of Business, Texas Christian University, United States

cMcGuire Center for Entrepreneurship, Eller College of Management, University of Arizona, United States

article info

Article history:

Received 5 October 2006

Received in revised form 1 February 2011

Accepted 3 February 2011

Available online 16 February 2011

Keywords:

Collaboration

Absorptive capacity

Collaborative process competence

Collaborative engagement

Buyer–supplier relationships

Supply chain management

Knowledge-based view, Relational view

Perceived interdependence

abstract

Firms are increasingly dependent on the knowledge and expertise in external organizations to innovate,

problem-solve, and improve supply chain performance. This research examines two capabilities that

enable firms to collaborate successfully as a means to combine knowledge and expertise in an episodic

collaboration initiative. Building from two theoretical foundations, the knowledge-based and relational

views of the firm, we examine the effects of absorptive capacity and collaborative process competence

on the outcomes of an episodic collaboration initiative. Using structural equation modeling, we empir-

ically validate the positive effect of absorptive capacity, collaborative process competence and level of

engagement on the operational and relational success of a collaboration effort. Results show that col-

laborative process competence mediates the relationship between absorptive capacity and collaborative

engagement, and positively influences both operational and relational outcomes. Finally, we offer sug-

gestions for managers to improve the effectiveness of inter-firm collaboration initiatives and discuss

future research opportunities.

© 2011 Elsevier B.V. All rights reserved.

1. Introduction

Over the past decade, collaboration has risen in importance with

the push to develop core competencies and strategic capabilities

within the firm, while outsourcing everything else (Gottfredson

et al., 2005). Collaboration with suppliers, customers and even

competitors to co-create solutions to problems is increasingly

important to a firm’s business strategy and a source of competi-

tive advantage (Vargo and Lusch, 2004). We view collaboration as

a mechanism to combine and deploy external and internal knowl-

edge and skills, and examine two capabilities (absorptive capacity

and collaboration process competence) that influence the opera-

tional and relational outcomes of such collaborations.

Historically, collaboration research has focused on long-term

collaborative relationships that are strategic in nature such as

alliances and partnerships. Dyer and Singh (1998) suggested firms

who invest in long-term relationships to combine resources in

unique ways could realize a competitive advantage and accrue

“relational rents.” Paulraj et al. (2008) suggested a long-term

relationship orientation is an antecedent to building relational

∗Corresponding author at: Department of Management, College of Business

Administration, Lehigh University, Rauch Business Center, 621 Taylor Street, Beth-

lehem, PA 18015.

E-mail address: zacharia@lehigh.edu (Z.G. Zacharia).

competencies that improve collaborating firms’ performance. Yet

many collaboration efforts are episodic in nature, focused on an

episodic initiative, with a defined beginning and end, occurring in a

limited timeframe, and taking place between specific organizations

or teams within firms.

In today’s dynamic environment, firms embedded in a “virtual”

network or a supply chain must collaborate with other firms to

pursue episodic initiatives, whether or not a formal alliance or

long-term relationship exists. Resolution of a significant quality

problem, supply chain network redesign, contingency planning,

or a new product launch are examples of episodic initiatives that

may require collaboration outside a formal alliance or long-term

collaborative relationship. In some cases, for example customizing

and implementing an information system, designing and building

a facility, or developing an environmentally friendly recycling pro-

cess, collaboration with firms not integral to ongoing supply chain

processes may be required.

Based on our review of the literature and preliminary inter-

views with a number of firms, we concluded that when companies

face unique or complicated challenges within the supply chain,

they are often dependent on an episodic collaboration as a means

to combine internal and external skills and knowledge for suc-

cessful resolution (Fig. 1). In such situations, they are likely to

engage intensely with another firm. We also identified absorptive

capacity and collaborative process competence as internal capabil-

ities that influence collaboration success. Firms with high levels of

0272-6963/$ – see front matter © 2011 Elsevier B.V. All rights reserved.

doi:10.1016/j.jom.2011.02.001